Reaction to the declaration came swiftly in Jerusalem, where Israeli Foreign Ministry spokesman Avi Pazner said, ''It is simply an indication that the PLO is going to continue terrorism'' against civilians.

Ending three days of talks with President Hosni Mubarak and Egyptian officials, Arafat said

with Mubarak standing with him, ''The PLO declares its condemnation of all acts of terrorism, whether by states, individuals or groups against the innocent and the unarmed anywhere.''

Arafat then urged the world to pressure Israel to end what he called ''acts of terrorism'' by Israel in and out of Israeli-occupied Arab lands -- the West Bank, Gaza Strip and Golan Heights.

''The PLO affirms its resolution of 1974 that condemned all operations outside the occupied territory and all forms of terrorism,'' he said.

''The PLO affirms the commitment of all its factions and institutions to this resolution. As of today, it will take punitive measures against violators. Since a commitment cannot be one-sided, the world community must commit Israel to end all acts of terrorism inside and outside'' occupied land, he said.

''In this context,'' Arafat said, reading from a prepared text in a firm tone, ''the PLO affirms the right of the people to resist Israeli occupation of their land by all available methods, with the aim of realizing a withdrawal.''